Im a little confused. Is America actually capitalist, or is it crony capitalist? Would TRUE capitalism have any problems? On the surface, it makes sense: make good product, get money. Someone makes better product, you need to improve yours or you go out of business. The issue is when we get monopolies and regulations that then restrict actual good products from being able to exist. But thats not a thing in true capitalism (so they say)
Is the best thing a mix of socialism and capitalism? I dont think we could abolish government, as someone has to lead. Certainly government needs to have actual checks and balances in place.
This video from Barry’s Economics is a fantastic explanation of exactly what you’re asking.
The whole channel is probably of interest to you.
But in short, yes. What we currently have in the US is a mutated bastardization of capitalism. The wealthy have spent the last ~50 years bending capitalism tward something like a kind of neo-feudalism.
To your second question:
Anyone who thinks one system is going to be the best at everything is just silly. Some markets are best served by capitalism. Others would be socialist. A few critial markets would likely be best server by more communist style, direct government monopoly. Mixing, matching, and even switching systems as markets grow and evolve will be vital in the future.